Published 2 August 2018
It therefore, remains strategic to understand the rationale for introducing these protectionist requirements and the basis for associating these rules with sustainable practices. The article commences with a legal assessment of LC rules in Nigeria and Angola, which are appraised in consultation with the Norwegian Model that materialised successfully to counter the negative effects of LC mandates to influence the country's revenue flows and employment objectives. The article asserts that LC in Nigeria and Angola pursue a disadvantageous route to the economic fabric of these countries and are fairly ineffective in achieving their overall objectives. Instead, the Angolan and Nigeria LC rules impose unnecessary legal burdens on governments and businesses in the sector.
The paper presents a legal study on LC mandates juxtaposed against sustainable principles as identified by the Brundtland Commission. It does so to reveal the paper's contention that LC policies may appear sustainable in their face value but in practice they remain ineffective and do not conform fully to attain the sustainable goals as defined by the Brundtland Commission. The analysis discovers that the literal interpretation of LC provisions (letter of the law) bears a striking resemblance to the principles of sustainability. Hence giving the impression of the ideal nature of LC rules. However, upon further analysis, the rules indicate that rigid legal frameworks and ambiguous institutional influences (the spirit of the law), remain inadequate in securing sustainable targets. Therefore, to resolve this inadequacy the article suggest reforms that consider long term objectives anchored within responsive legal and regulatory frameworks that adapt to change while maintaining their objectiveness and competitiveness. Overall the article concludes that in order for oil-producing countries to realise their potential rising from their natural resources through LC requirements, legal reforms of their energy industries is necessary to incorporate quality and sustainable policies for growth and development as recommended by The World Summit on Sustainable Development.